Sunday, November 13, 2016

Sears a goner?

 Investopedia : The drip-drip-drip of speculation is turning into a deluge of reality as more suppliers reportedly are turning off the spigot of inventory to Sears Holdings (NASDAQ: SHLD) due to fears the retailer is headed for bankruptcy.
What started with the supposition that JAKKS Pacific had stopped shipping toys to Sears' Kmart stores after the toymaker cryptically referenced the company on its earnings conference call last month has apparently become a rout. Insurance brokerage Arthur J. Gallagher & Co. told Business Insider that at least six of its clients had "significantly" reduced their shipments to Sears because of a belief that retailer won't survive as a going concern.
The brokerage represents the suppliers in cases with insurance companies in the event a retailer does go under so they can be paid for their receivables. The firm said one of its clients had stopped shipping inventory to Sears altogether.
The chain operator has been hanging on seemingly by the thinnest of threads, counting on stopgap, short-term loans from Chairman and CEO Eddie Lampert, who has used his hedge fund, ESL Investments, to prop up Sears as sales have fallen and losses widened.
The Sears in my neighborhood managed to survive the cuts, but the place is empty. Up the street two blocks, the WalMart is packed.

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